Skip to comments.The Obamacare Debacle. It's Certain Failure is all too Predictable.
Posted on 11/15/2012 7:02:03 AM PST by SeekAndFind
If one wanted to sum up the consequences of the entire 2012 election in a single issue, look no farther than Obamacare.
The new health-care law is generally regarded as the signature achievement of the presidents first term. Its certainly emblematic of Obamas entire approach to government and what we can expect from his second-term initiatives.
The president promised a great deal of benefits from health-care reform: lower premiums, better care, universal coverage. He reassured Americans: If you had health insurance, and you liked it, you could keep it. The bills gross ten-year cost would be less than $1 trillion, and the legislation would actually reduce the deficit in the long run. The rich and some big businesses might have to pay a bit more in taxes, but the middle class would be better off.
But as with so many other policies of this administration, the results never matched the rhetoric. The pretty promises turned out to be just words.
Rather than work across the aisle, President Obama pushed his bill through on a purely partisan basis, using dubious parliamentary maneuvers and refusing to consider Republican alternatives. Nor was the president deterred by public opinion. Polls consistently showed that Americans opposed the presidents plan they still do but the president insisted on doing it his way.
The president who always prefers government to markets unsurprisingly produced a costly new entitlement program, financed by both new taxes and massive debt, that relies on top-down planning. The $1 trillion price tag has been left far behind. The Congressional Budget Office estimates that the bill will now cost at least $1.8 trillion through 2022, and other estimates suggest it could cost as much as $2.2 trillion over that period if all costs are taken into account, adding more than $823 billion to the deficit over ten years.
Even the governments own actuaries expect it to drive up insurance premiums. The most recent report by the Department of Health and Human Services estimates that in the future premiums will rise at 7.9 percent annually, double the rate they would have risen if Obamacare had not been passed.
Many of Obamacares taxes fall not just on the rich, but on the middle class and small businesses. In fact, the mandate tax in particular will hit 11 million middle-class taxpayers to the tune of $6 billion. Moreover, the laws costly new mandates and regulations are widely seen as a small-business job killer.
And, while Obamacare doesnt directly ration care, it puts in place structures that will almost inevitably lead to rationing. Notably, beginning in 2017, a board of 15 unelected bureaucrats, the Independent Payment Advisory Board (IPAB), will have the authority to impose drastic cuts to physician reimbursements under Medicare. If abused, this authority could allow the government to refuse to pay for some treatments or providers, effectively rationing care. Even under the best of scenarios, the already-planned cuts will force as many as 15 percent of hospitals to close and cause many doctors to stop seeing Medicare patients. Given Medicares enormous unfunded liabilities, some reduction in benefits is inevitable, but it is typical of the Obama administration to prefer that bureaucrats rather than individual consumers decide how that reduction takes place.
In addition, millions of Americans are discovering that they will not be able to keep their current health-care plans. This includes seniors who will lose their Medicare Advantage plans, and businesses and individuals who find their plans non-compliant with Obamacares required benefits (such as Catholic charities and schools that are now required to offer birth control, including abortifacients). Surveys suggest that 10 to 30 percent of employers could drop their coverage, dumping their workers into plans offered on the government-run exchanges.
Yet, for all this, Obamacare falls far short of its goal of universal coverage. Nearly 20 million Americans will still be uninsured after the bill is fully implemented. Millions more will simply be dumped into Medicaid.
A President Romney could have used waivers, executive orders, and his power over budgets to delay or cut back on parts of the law.
Thus, on health care, as on so many other issues, last Tuesdays election left us with a president whose belief in big government and centralized control has been and will only continue to be a disaster. The 2012 election has delivered us a devil we know all too well.
Michael Tanner is a senior fellow at the Cato Institute and author of Leviathan on the Right: How Big-Government Conservatism Brought Down the Republican Revolution.
“Its” (not “It’s”).
OK, so when they take away my affordable catastrophic insurance and force me to buy unaffordable Obamacare insurance that I can’t afford and thus won’t buy, incurring their mandated tax-penalty which I won’t pay, thereby incurring their wrath and consequences, impounding my property and sending me off to the Gulag . . . will I get to come back if it collapses? Or will it collapse sooner rather than later?
Just getting ready to post the same thing.
Maybe he DID mean “it is failure”... or not.
The failure is planned.
Every business person I know says the cost is soaring, they are seriously depressed and cutting back business plans, and they are talking about dropping employee coverage because paying the voucher fine is cheaper.
So the American people are taking it in the back, a complete lie and disaster to insure Obama’s non working voters.
It’s not supposed to work. It’s supposed to fail, forcing single-payer. Duh.
It was intended to fail.
It ony paves the way for a single-payer system.
Thank you to all the dumb asses that put this maggot back in office.
Maybe - lazy thieves, definitely.
Please fix the apostrophe. I can’t read an article with a glaring error in the title.
oh for Pete’s sakes it Cato institute, get something more respectable
The ironic thing in my mind is that the Health Care issue was one that really needed to be addressed. If 0bama had taken the time and examined each part and it’s impact logically, potentially a good law may have come out of it. There are some aspects, the “pre-existing conditions” clause for example, that even the most conservative of my friends and acquaintances support. However, the way it was rammed down our throats and the impact, not only on the Health Care Industry, but the economy, is intolerable. The result is that the entire monstrosity must be nullified.
Or, will they just put up with the chaos until they get used to it?
The dirty little secret is that Congress will bow to the public pressure and pain created by Obamacare and eliminate the cost savings measures. They will not reduce payments to doctors and hospitals further increasing the costs and adding to the debt and deficit. The Dems will do whatever they can to fix and save Obamacare. In the process they will wreck the healthcare system and bankrupt the country.
The last thing we needed was another entitlement program. SS and Medicare now represent a $60 trillion unfunded liability. We have 70 million now on Medicaid and Obamacare will add 18 million more to the system. Add to that an aging population that is retiring at 10,000 a day for the next 20 years. Health care costs are going up period.
Obamacare will be the albatross around Obama and the Dems' neck. Maybe we will get a Rep who can really detail the disaster that Obamacare is and will be. Romney was hamstrung in that regard.
This is what happens when you nominate a candidate that effectively took health care off the table as a campaign issue.
I wonder if employers will "get used to" the new plan? Today, if I am sick and need to take time off of work to see a doctor, I can usually get in and get out in a day's time. Tomorrow, I might still get sick, but I might wait days to get in to a doctor. And perhaps longer, if specialized treatment is required. How long will employers be tolerant of this inefficiency?
The best bet for defeating Obamacare at this point is to start a movement to have it apply equally to *all* Americans, including our worthless leadership and, of course, all union workers.